At Tuesday’s Ways and Means Subcommittee on Social Security hearing, Dr. Charles Blahous of the Social Security and Medicare Boards of Trustees testified that Americans owe $24 trillion in unfunded liabilities to those already in the Social Security system.
Congressman Jim Renacci (R-OH), a CPA, asked Blahous what the impact would be on the Social Security trust fund if all unfunded liabilities needed to paid out. Blahous said that they usually highlight the 75-year “open group obligation” which is currently $10.6 trillion, but said the “actual amount of unfunded obligations within the Social Security system is actually substantially higher than that. ” According to Blahous, the reason is that the shortfall does not play out gradually over time. “It’s actually something that is on the books now. There is an excess of benefit obligations over contributions for people who are already in the system. And that’s actually about $24 trillion. And that’s about 4.4% of future wages going forward,” Blahous said
Actually, it’s even worse to that, according to the Social Security Trustees’ 2014 Annual Report to Congress. Tucked way in the back in Table VI.F1 in the appendix we find, “The excess of the present value of cost for past and current participants over the present value of dedicated tax income for past and current participants produces an unfunded obligation for past and current participants of $26.1 trillion.” (But what’s a of couple trillion here or there?)
Asked by Renacci if Social Security taxes this year will be adequate to fund current benefit obligations, Blahous explained that there will be a shortfall of around $80 billion this year alone.
Renacci wanted to know where the money will come from to make up the difference.
“Well, when the payroll taxes fall short of benefit obligations, the difference has to be made with payments from the general fund. Right now they’d be in the form of interest payments from the general fund to the trust fund and a large share of those interest payments would go out the door immediately to pay beneficiaries,” said Blahous. He added that $80 billion would be added to the federal deficit this year as a result of the shortfall.
First of all what is money and what is currency ?
You all need to study that first or remain uninformed ! '
You are all modern day serfs on uncles plantation!
Mushrooms one and all
kept in the dark and burred in Horse manure! and expected to produce for your masters....
You all make me so angry by being uninformed
LBJ, Social Security Trust Fund, Medicare, Labor Unions, Political Dickering..
LBJ, like Nixon, had all his phone conversations recorded and now sounds like Someone has caused them to be public...the following is mostly about the beginning of Medicare tied to SShttp://www.ssa.gov/history/LBJ/lbj.html Trust Fund..
Can I reply to my reply? The Insanity of the Democrats and the people who BELIVE their lies has me talking to myself a lot lately anyway.
Just like now NOTHING Is/was done for ANY reason except to generate VOTES.
Like in ONE of LBJ's phone conversations he says we need the Medicare Bill to get the old folk's vote and he was not the ONLY DEM at the trough.
Andrew Jackson, not exactly perfect, ONLY Pres against Fed Bank I believe. ETC
Obama & the Democrats "kicked the can" so far down the road it's coming back around again. They also stole $716 from Medicare which nobody mentions any more, can't keep up with the A__Holes' scandals!
This thread is proof that no one wants to examine the 800 pound gorilla in the room!
That Gorilla is the currency [ it is not money even if you think it functions like money]
Every other subject is small potatoes !
Play Waltzing Matilda for me and move them deck chairs boys and girls ! LOL